Autumn Statement 2022: Key Points

The Chancellor of the Exchequer Jeremy Hunt has announced his Autumn Statement in the House of Commons, aiming to restore stability to the economy, protect public services and build long-term prosperity for the United Kingdom.

He confirmed that the UK was now in recession as he unveiled tax rises and spending cuts worth billions of pounds.

Here we have a summary of the key points

Tax and wages

• State pension payments and means-tested and disability benefits to increase by 10.1%, in line with inflation
• The National Living Wage for people over 23 will increase from £9.50 to £10.42 per hour from April 2023
• The threshold at which higher earners start to pay the 45p rate will be reduced from £150,000 to £125,140
• Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028.
• The Dividend Allowance will be reduced from £2,000 to £1,000 next year, and £500 from April 2024
• Annual Exempt Amount in capital gains tax will be reduced from £12,300 to £6,000 next year and then to £3,000 from April 2024.
• Local councils in England will be able to hike council tax up to 5% a year without a local vote, instead of 3% currently

Energy

• Household energy price cap extended for one year beyond April but made less generous, with typical bills capped at £3,000 a year instead of £2,500
• Households on means-tested benefits will receive a cost-of-living payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.
• Windfall tax on profits of oil and gas firms increased from 25% to 35% and extended until March 2028
• New "temporary" 45% tax on companies that generate electricity, to apply from January

Other Measures

• Lifetime cap on social care costs in England due in October 2023 delayed by two years
• Social housing rent increases capped at 7% from next April - instead of 11% due to inflation
• Electric cars, vans, and motorcycles to pay road taxes from April 2025
• As confirmed last month, the main rate of Corporation Tax will increase to 25% from April 2023.

The Chancellor said: 'There is a global energy crisis, a global inflation crisis and a global economic crisis. But today with this plan for stability, growth and public services, we will face into the storm. Because of the difficult decisions we take in our plan, we strengthen our public finances, bring down inflation and protect jobs.'

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